DRO

A Debt Relief Order (DRO) is a quicker, cheaper and simpler route to enter Bankruptcy. The DRO is available to people living in England, Wales and Northern Ireland. The DRO was introduced on the 6th April 2009 and the rules were updated on the 1st October 2015. The Scottish alternative is known as the minimal asset process. If you have more than £50 disposable income on a monthly basis you would suitable for a different debt solution including an IVA or Debt Management Plan. 

You are able to apply for the DRO without attending court, the cost is £90 which is payable to the official receiver. This is charged at the beginning of the solution, after which there is no monthly payment unless you circumstances change. The DRO is designed for people with low income, low assets and low levels of debt. The debt solution was designed to help people who fall into this category enter bankruptcy in a more affordable manner.

Debt Relief Order Criteria 

To be applicable for the debt relief order a person must;

– Not have unsecured debt exceeding £30,000

– Not have any assets exceeding £1,000

– Not own your property (This includes having a mortgaged property)

– Not have available disposable Income after normal household expenditure exceeding £50

– Be domiciled in England, Wales and Northern Ireland or in the last 3 years have been resident or carrying on business in England, Wales or Northern Ireland

– Not have been subject to a DRO within the last 6 years

Also, you cannot apply for a DRO if you are currently bankrupt, in an IVA or have a current Bankruptcy Restrictions Order or Undertakings or have current Debt Relief Restrictions or undertakings.

A debt relief order (DRO) is a route into bankruptcy which will affect your credit rating.